and the circumstances. Therefore, current research observed the influence of eco- labelling, green packaging and branding, environmental advertisement, green
premium pricing, and eco-image to consumers’ environmental behaviour.
1.2. Problem Statement
Based on the previous background, the problem statement would be: “Do eco-labelling, green packaging and branding, environmental
advertisement, green premium pricing, and eco-image influence the consumers’ environmental behaviour?”
1.3. Research Objective
According to the problem statement that formulated earlier, so the research objective of this research is:
”To understand the influence of eco-labelling, green packaging and branding, environmental advertisement, green premium pricing, and eco-
image to the consumers’ environmental behaviour.”
1.4. Research Contribution
As this research was in progress, there were several research contributions: a.
For academic, this research being expected could become a literature reference and triggered some other researchers to explore more about
this topic.
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b. For managers or companies, this research could be used for the making
of the more effective green marketing strategy to promote their green
product.
c. For the readers, this research could give more knowledge and lesson.
1.5. Research Limitation and Scope
The present research conducted in Yogyakarta, Indonesia. The questionnaire administered in hypermarketssupermarket where green product widely available
to visitors randomly who have experience on purchasing green products through
offline store.This research does not point at any specific company or product. 1.6. Research Originality
This research was replicated but simplified from the previous research done by Juwaheeret. al. 2012 entitled,”Analysing the Impact of Green Marketing
Strategies on Consumer Purchasing Patterns in Mauritius”. In that research, Juwaheer together with her partners, they investigate not only the influence and
relationship of the green marketing strategies and environmental behaviour, but also related it with the environmental concern and belief. However, this research
only observed the influence of green marketing strategies being used in that research to consumers’ environmental behaviour. The instrument being used were
the instrument that also set up by Juwaheer and her partners.
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CHAPTER II LITERATURE REVIEW
2.1. Theoretical Background 2.2.1. Green Marketing
Green marketing—which simply referred to an activity of marketing and selling products or services into potential consumers designed to minimize
negative impact toward environments—trend began over the past few decades since 1970s, when a sharp rise of critical environmental issues has been
successful infecting the rise of the environmental movement Delafrooz, et. al., 2013.
2.2.2. The Importance of Green Marketing
Since there is adoption of green business, companies need a marketing department which has the capability to communicate this change into citizens.
Unfortunately, a traditional marketing felt didn’t work for the new marketplace concept and that’s how marketing was started turning green Chitra, 2013, that
was for the very first time people felt about the importance of green marketing. Similar illustration also shown by Grant 2008 that stated: it was the turning
point when companies started to feel they need green marketing.
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2.2.3. Eco-labelling
Delafrooz 2013 cited that study done by Rashid’s 2009 study finds that eco-labels has a positive effect on consumers’ knowledge and intention to
purchase. It always has positive relations with green packaging when it comes to impress potential consumers.Eco-labelling defined as a label on environmentally
friendly products. The labels contain whether a small simple piece of paper or a complex that is included as part of the package. The content is the brand of the
green products and the green products description.Companies often used eco- labelling and green packaging to promote the identification of green
products.The importance of eco-labelling, even increasing when the potential consumers’ do not have any knowledge about green product since the green
product is not an ordinary product. Sometimes it takes a lot of description to
raise consumers’ knowledge and awarenessDelafrooz, et. al., 2012. 2.2.4. Green Packaging and Branding
Green packaging defined as product design and what covered the product. Green packaging is an important tool for product identification because people
could value the characteristics of the product from it. Meanwhile, green branding, defined as a brand that less harmful for the environment and it has to
help consumers’ to identify the green products among other products. The green branding itself demonstrated that it is increasing the consumers’ awareness of
the green products. Thus, green packaging is use to support the brand awareness and the message that brought by green branding Rahbar and Wahid,
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2011.However, according to First and Khetriwal 2008 in Juwaheeret. al.2012, the green branding concept less explored by the green marketers even
though several studies demonstrated that environmental friendly brands has raised more consumers’ awareness and researches observed by Eagly and Kulesa
1997; Swenson and Wells 1997; Travis 2000; Pickett-Baker and Ozaki 2008 affirmed that brands has power to change the impression and behaviour
of consumers’ consumption.
2.2.5. Environmental Advertisement
The green advertising is important because it is the way companies could communicate their product characteristics and their product specialty in a deeper
way. Other than that, green advertising also facilitates green product promotion. Understanding the effect of green advertising on consumer purchasing patterns
could give people an impetus to set better promotion. Environmental advertisement has chance to gain the consumers’ credibility and attention
through emotional intelligence by providing the truth information about environmental issues and product contributions without any exaggerated
statements or claims Kong et. al., 2014.
2.2.6. Green Premium Pricing
Based on Christopher 2002, premium pricing is a practice of keeping the price of a product or a service high. A premium pricing strategy is a strategy that
sets the price of a product higher than a similar product. In the green context, the premium pricing set because of a certain value behind production cost that will
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go to the environmental contribution. A study done by Swezey and Bird 2001 found that green premium pricing contributes towards consumers’
environmental behaviour.
2.2.7. Eco-Image
Consumers’ perception often easier understood by the consumers’ actual response to green marketing tools. Green marketing tools, sort of eco-label, eco-
brand, eco-ads increase the awareness of green products’ attributes. Indeed, the term eco-image itself derived from consumers’ perception and green marketing
itself. Hence, the eco-image refers to the fundamental of what may affect the
perception of green concept Delafrooz, et. al., 2013. 2.2.8. Consumers’ Environmental Behaviour
Kopnina and Blewitt 2015 in their book,”Sustainable Business” wrote that since the post-World War II there was growing interest among people to
questioning the world sustainable as an effect of the damage and crisis left by the war. It affected the change in how they think and behave. They gradually
change their consumption behaviour since they believe that by the change their behaviour could be a contribution to the environmental protection. Consumers’
try to consume goods and services that environmentally safe. Thus, there was a green consumers’ bandwagons and the trend of being green in 1980’s-1990’s
Kopnina and Blewitt, 2012. However, Louchran and Kangis 2004 wrote that strong environmental issues view claims do not necessarily can directly translate
into actual purchasing decisions to green products and services. Yet, Juwaheeret.
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al.2012 highlighted that it may vary depending on the geographical context cause of demographic backgrounds.
2.3. Research Framework The research framework could be seen down below.
Note: This research framework is adopted from Juwaheeret. al. 2012.
Eco-Labelling
Green Packaging and Branding
Consumers’ Environmental
Behaviour Environmental
Advertisement
Green Premium Pricing
Eco-Image
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2.4. Hypothesis Formulation
Studies explained that eco-labelling, green packaging and branding, environmental advertisement, green premium pricing, and eco-image has
important role in consumers’ environmental behaviour. The previous study done by Juwaheeret. al. 2012 has shown that there is an influence between green
labelling and consumers’ purchasing patterns, between green branding and consumers’ green purchase intention. A study done by Rashid’s 2009 found that
eco-labelling has a positive effect on consumers’ knowledge and intention to purchase green products. Meanwhile, the positive relationship also found between
green advertising and consumers’ environmental behaviour Juwaheer, et. al., 2012. While a study done by Swezey and Bird 2001 has shown that green
premium pricing contributes towards consumers’ environmental behaviour. The influence of eco-image and consumer behaviour also found in the previous study
done by Delafroozet. al. 2013. Thus, by those literatures, a hypothesis formulated as follows:
H1. Eco-labelling, green packaging and branding, green premium pricing, environmental advertisement, and eco-image significantly influence to
consumers’ environmental behaviour.
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CHAPTER III RESEARCH METHODOLOGY
3.1. Population, Sample, and Sampling Technique
